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As the iPods get smaller and smaller, so too - apparently - does the cost of the device's ever shrinking components. According to the latest findings from our tear-down pals at iSuppli, the 8GB sixth-generation iPod nano roughly costs $43 to construct. iSuppli recalls that the fourth generation nano was only slightly less expensive to produce at around $41.

“Instead of piling on features, as so many brands do with their latest products, Apple with the sixth-generation iPod has maintained or even removed some attributes in order to fit the form factor and function desired,” said Andrew Rassweiler, teardown services manager, for iSuppli. “This has enabled Apple to offer the smallest iPod including a touch screen, while keeping component costs to a strict budget.”

That "strict budget" alluded to was aided greatly, it seems, by Apple's fiscally savvy choice of 8GB of NAND flash memory for storing music and also the removal of the previous generation's camera. All told - and to save you from doing the math - the production cost of the new nano is approximately just under one-third of its retail price.